Latest lockdown has biggest impact of all on some local eateries
It’s grim news for Canadians on the economic front these days, with the Bank of Canada expected to announce a hike in interest rates, and the current inflation rate in Ontario sitting at 5.2 percent. The recently-released Canada's Food Price Report predicts the average Canadian family of four will pay an extra $966 for food in 2022, for a total annual grocery bill of just under $15,000 (a seven percent increase compared to 2021.) Housing prices climbed by over nine percent compared to December 2020, and gas prices were up over 33 percent during the same period.
Restaurateurs have been struggling for almost two years due to on-again, off-again lockdowns and other Covid-19 driven restrictions. Some say they are nearing the breaking point.
Ontario Premier Doug Ford shut down restaurants again on January 5 (along with many other types of businesses) due to surging Covid-19 infections. Last Thursday, Ford decreed that Ontario would ease its Covid-19 restrictions on indoor restaurant dining on January 31, with the caveat that openings must be at 50 percent customer capacity, and that masking protocols and proof of vaccination would be required. Capacity limits are set to be withdrawn on February 21, as part of Ontario’s “cautious and phased approach” to lifting public health measures, according to a provincial statement.
In order to help food service businesses endure the economic trauma of intermittent lockdowns and restrictions, Canada’s federal and provincial governments have made a number of financial relief initiatives available to restaurant owners and employees. The Canada Emergency Business Account (CEBA) provides interest-free loans to Canadian small businesses up to $60,000, with up to $20,000 in loan forgiveness built into the program. The Canada Emergency Wage Subsidy (CEWS) provided eligible businesses which experienced a drop in revenue due to the Covid-19 pandemic a subsidy to cover a portion of employee wages. The Canada Emergency Rent Subsidy (CERS) was another federal program.
Announced in late December, a new Ontario Business Costs Rebate Program provides rebate payments to cover half the property tax and energy costs while the latest restrictions remain in effect. Also introduced is a six-month interest-and penalty-free period for businesses, which the Ford government says will provide $7.5 billion in relief to approximately 80,000 Ontario firms. Still another provincially run relief effort is a hydro-relief program for businesses and residential customers starting on January 18.
Restaurant owners have asserted for months that the federal Canada Recovery Benefit (CRB) program has hampered efforts to bring back workers, incentivizing some, in their view, to decline work opportunities in favour of staying at home for reduced pay. The CRB paid out as much as $500 per week to unemployed workers.
Lehmber “Sonny” Sindhar, owner of Domenic’s on 20, shares the view that CRB hurt struggling restaurants by making it hard for them to retain staff, many of which chose to stay home and collect a benefit when they could have been working.
“We're going through hell right now. Government is not doing enough for restaurants,” said Sindhar.
He took advantage of the government loan program, a necessity to keep the doors open.
Sindhar noted the dramatic jump in meat and produce prices, and said that even with take-out orders coming in, delivery services like Uber Eats and DoorDash take a significant chunk of the profit.
“When people come to dine-in, they have some drinks with their food. We’re not making money on the food right now, because it's so expensive. And we cannot jack up the price, because that will turn people away.”
We’re not making money on the food right now, because it's so expensive
Peter Moore, owner of Peter Piper’s Pubhouse in Fonthill, has noticed a drop-off in take-out business during this latest set of restrictions, even greater than under prior lockdowns.
“Last year I was able to keep a lot of my key staff. This time, I have had to lay some off,” said Moore.
With delivery services taking 30 percent off the top, Moore is investigating his own delivery option for the future.
“There was a huge delay on the hospitality recovery programs, and now they are a lot harder to get,” he lamented. “And the cost of food now is crazy. I can't charge what I need to charge, or people wouldn’t buy it. Frankly, my competition is no longer other local restaurants, it’s Sobeys and Food Basics. A mom can grab a roasted chicken and frozen vegetables at a supermarket and feed her family for 20 bucks, whereas I can't feed a family of four for less than 50 bucks.”
Moore and his crew continue to roll with the punches, but he acknowledges it is getting a lot more stressful.
“We're still very thankful for the support from the community, but we're seeing a lot of pandemic fatigue. People are just tired of it all.”
Once he re-opens with dine-in service, Moore swears he’s going to go back to a five dollar burger special.
“Believe-you-me, I'm going to find a way to do it. To get people back, we’ll do some crazy specials again, and have the music back on Sunday afternoons.”
We're still very thankful for the support from the community, but we're seeing a lot of pandemic fatigue
Proprietor Christie Devos, of Cured Charcuterie and Cocktails on Pelham Street, told the Voice that her business enjoyed brisk business after its grand opening in October, which continued to climb into December with in-house and take-out service. Under the most recent bout of restrictions, things changed dramatically.
“Business is slow right now,” said Christie, “but we are still offering a take-out menu and custom cocktail kits from Wednesday through Saturday.”
Ben Han, who runs the Grill on Canboro in Fenwick, sat at a table with his family at 11:45 AM on a Wednesday. Prior to the pandemic lockdowns, the restaurant would be packed with a busy lunch crowd at that time. Today, the room is empty, and take-out is down.
Han offers take-out but no delivery. Business has dropped off, and he has reduced his hours, now closing on Sundays and Mondays. The Grill traditionally brings in many local diners for breakfast and lunch. Dinner attracts smaller numbers, and the business closes earlier than many other restaurants. It’s a family-run operation, with Ben assisted by his wife, Young, daughter Janelle, and son-in-law Zeljko. In non-Covid times, Han’s staff has totalled eight.
“I guess a return to normal is going to take quite a long time…many months, at least,” said Han.
